Monday, November 19, 2007

eBay's Gallery Promo Stuck in Neutral

Just popping in from the Denver airport while I travel and I wanted to comment on the latest eBay promotion of "free gallery" for CORE listings. It began on Nov. 6th and will continue until Dec. 12th but it doesn't appear to have accomplished much. I didn't believe it would increase listings much but I thought it might improve conversion. I tasked some sellers who are now using gallery because of the promo if they noticed an increase in conversion rates and they are saying it is pretty much the same as before "poor".

Bob Peck of Bear Stearns writes:

We estimate that sellers listed 15.2 mn non-store items on the U.S. site last week, down 1% from the previous week. As we expected, the gallery promotion (Nov. 6th - Dec. 12th) did not provide meaningful lift to the listings. Listings were up 5% Q/Q but down 2% YoY. We note that YoY & Q/Q, listings were up against tough comps due to promotions. QTD, we estimate that sellers listed 101.2 mn items on the U.S. site, up 14% Q/Q but down 10% Y/Y. In our previous note, we attempted to quantify the impact of the gallery promotion on eBay’s revenues and concluded that total revenue impact of gallery promotion could be up to $15 mn for eBay, which could be offset by a 9% increase in listings. As such, should listings growth continue to be sluggish, we think eBay could take a loss as a result of the promotion.

I'm sure that eBay is seeing an increase in advertising revenue as well the benefits of FX (Foreign Exchange) so those increases may very well pay for these promos but where does eBay go from here. They have run 3 separate extended promos since the beginning of September with very limited success. How many more arrows do they have in their quiver?

This will probably be my only post this week so I would like to wish you all a wonderful Thanksgiving Holiday.

5 comments:

Anonymous said...

Randy, your loyal listeners want to hear from you with more regularity! ..is once a day too much to ask for? Even if you just pop in and say Hello, check out XYZ article. Your overall consistency to date is appreciated. I for one consider routines to be utopia.

Mark Ayers said...

Randy

This comment posting is new, Not sure if this is getting to you twice or not. I posted once but it did not show up so maybe there is a delay, I am more inclined to think I hit the wrong button.

Anyway I found your lens through a lens of the day email, there was your lens to be checked out next to a Monty Python lens.

I see how well you have your name branded out there so I am following suit and will start to brand myself as well.

My website is starting to show up here and there and now my handle will as well.

best

Mark AKA Marka111
http://www.just100dollarbills.com

Randy Smythe said...

Anonymous

Thanks for the comment. I must have missed it last week with the holiday. I will certainly try to do my part in posting more regularly, thanks for the kick in the butt.

I wouldn't want to mess with your Utopia.

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